The subject of this research are government bonds of the Republic of Croatia and the determinants that influence their yield. The yields on government bonds should reflect the systemic risk of the state and in its expression to synthesize all the macroeconomic indicators of monetary and fiscal policy stability. The problem of this research is to determine the determinants that affect the yield of bonds of the Republic of Croatia and prove that the fundamental determinant is the systemic risk of the state. After the concept of bonds, their value and market are explained in detail, it is shown that certain factors such as market interest rates, economic cycles and systemic risk affect the price of bonds. The hypotheses mentioned at the beginning of the work were statistically processed through various tests in the empirical part of the research to show their significance.